The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

OF the $10m allocated for business recovery grants/loans to assist small businesses post-Hurricane Dorian, applications totalling close to $4m in requested funding have been submitted to date by impacted businesses on Grand Bahama.

This is according to Davina Grant, executive director of the Small Business Development Centre Access Accelerator programme, who reported that it represents an average of around $150,000 per applicant.

“We have 30 applications from Grand Bahama and those needs are nearly up to $4m,” she said yesterday. “Again, we are assessing them to make sure it is what they need.”

In Grand Bahama, over 63 percent of 200 businesses surveyed in Freeport following the storm were uninsured, and 22 percent of them have been forced to reduce staff, according to a survey conducted by the Grand Bahama Chamber of Commerce.

Many entrepreneurs lost their entire inventory and equipment in the business sector of Queen Highway, and in downtown Freeport due to flooding as a result of storm surge.

Last week, business licensees lamented that their operations are on “life support” and that many of them do not know where or who to turn for help getting their businesses restored and reopened.

Ms Grant, who travelled to Grand Bahama on Thursday, said that SBDC is here to help by making funds available to those small businesses who need assistance.

The government has set aside $10m to assist with business recovery funding post Hurricane Dorian.

While driving through the city, Ms Grant noted that she was pleased to see the ‘open now’ signs, which shows that businesses are slowly, but surely reopening in Grand Bahama.

She noted that Port Lucaya Marketplace would be reopening for business this weekend, for the first time since the storm in early September.

Ms Grant said that SBDC is operating at the BAIC Building on Sunrise Highway between 8.30am to 5pm to assist anyone who would like access to the funding put aside.

SBDC is offering grant and equity funding, and guaranteed loans.

Businesses that required immediate assistance with some part of their business may also get access to $5,000 in stand-alone grants, said Ms Grant, that are not tied to a loan or equity investment.

“This funding can help to buy lumber, equipment, or constitute in some way assistance with taking care of some of your working capital while you get back on your feet,” she explained.

Businesses requiring larger amounts, Ms Grant said would need to seek funding either through hybrid facility or direct facility.

“Hybrid means that it would consist of part grant and part equity. And some persons may just want a loan for a short period of time because they are waiting on the insurance adjusters and the likes to pay off, and that might help bridge the gap,” she added.

Those seeking assistance can access and download application forms online at accessaccelerator.org.

She urged persons not to get discouraged by the forms which “looks like quite a bit of work.”

“Don’t let that stop you; come and sit with one of our team members and let them walk you through the portions that are relevant to you,” Ms Grant said.

“We want to assist you and we want to ensure that we are covering your business…back to where you were before. So, if you were at two to three employees before, let’s try not to use the funding to get 50 employees. We are looking to get you back to the status quo, and then (you can) continue to work with SBDC to expand your business,” Ms Grant said. “So, we want to do it in phases: phase one is recovery and phase two is expansion.”

Greg Laroda, of the Grand Bahama Chamber of Commerce, said the results of the group’s business survey were “surprising.”

He said that in response to the question of whether they had insurance to cover the damage received during the hurricane, over 63 per cent said they did not have insurance or adequate insurance.

“That it is a common thing among businesses, in general, especially when you are looking at small micro businesses,” he explained.

He indicated that most would not insure their contents when they are renting premises.

“So, when you lost all your inventory or equipment that was not insured, then you can see where it could appear hopeless for a lot of them especially since struggling prior to hurricane, and now this comes along, and you have to start from scratch - that is the reality of it,” he said.

The chamber is also concerned about layoffs due to the storm.

“With the smaller businesses they may be able to pay and hold on to staff for a short period without income, but after that more and more of them would have to let staff go,” he said.

Ms Grant explained that the programme offers funding to help carry businesses for a period to pay staff until rebuilding and getting inventory.